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. >> hi everyone, welcome to "on the money," i'm maria bartiromo, coming to you from outside the new york stock exchange, a massive glitch brings trading to a halt for hours at the nasdaq. what went wrong and what does it mean for your money. and an interview with the ceo of the world's largest retailer and a company that employees more than anybody else. we will talk jobs and the economy with walmart's ceo, why lobster men are feeling the pinch, and you are still paying full price. "on the money" begins right now. this is america's number one financial news program. "on the money," now, maria bartiromo. >> here is the news as we go into a new week maria bartiromo.
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anhalt to trading because of a software glitch. securities could not be priced and there was no response from the nasdaq officials before or during the cause of the halt. nasdaq defending their handling of the outage. >> we took the proper amount of time, to make sure that the testing was done, and the communication was so strong and we got it done and came back and came back successfully. it's not our job, nor will it be for us to go to the press, the public, while we are focused on the issue. >> nin spite of that, the nasda was up. and the dow broke the longest losing streak of the year. the markets continued to climb on friday. the federal reserves coach market committee released the minutes from july's meeting, and
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investors were hoping for clarity on when the fed was going to slow down the bond buying program rmp they were disappointed as the fed provided few clues on when that will happen. and home depot beat earnings expectations and raised its forecast as did lowe's, staples fell short as did sears and j.c. penney. steve bomber announced from microsoft said he is stepping down. he will retire within 12 months. but will continue on the job until a new leader for the company is found. microsoft shares jumped on the news. a frozen market, some fed speak and questions of tapering, what does it mean for your money? the chief global strategist, and andy cross, gentlemen, good to have you, thanks for joining us. dan, the flash freeze, the nasdaq, halts, trading for three hours because of a technical
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glitch. what kind of an impact do you see it having on the consumer and the refail investor? >> so, i think the larger issue here is getting lost in the communication debate and the technical glitches is the idea that at the end of the day, what happens in the stock market and what happens in the capital market, the essence of democracy and capitalism. it's where investors go to hire and invest and you are doing damage in terms of sentiment, but if you lose faith in the stock market. you are in essence losing faith in captain litsch. >> yeah, and that is why the retail investor has stepped a way, isn't that right? >> i think there's a bit of that. we have seen a lot of issues, whether it's the facebook, ipo, and others bubbling up on top of the financial crisis. i think other individual investors say, hey, what is going on with all the big money in new york? >> the whole idea that they shut down the market and stopped trading to no impair the retail investor, it happens. at the same time, i guess the
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main chris simple and other commentators pointsed it out is can you go three hours without saying anything. >> let's look at the markets meanwhile, the federal reserve of course, releasing the minutes from the last fed meeting. everyone was looking forward to it for any clarity on when the fed would start the tapering, start slowing down the bond buying program and they really didn't get any. >> yeah. >> did that surprise you? it did not surprise me so much, i think there's a lot of uncertainty both in the world and in the economy as wells and we are seeing it on the fomc too, and we saw it in the minutes. the report seemed to be more dire than i thought. i know there's talk about the boards wanting to go with a september action and pulling back on the bond purchases. there are mixed numbers just this week when you look at the housing data. mixed numbers on the new home sales and it's evident of what is going on in the market.
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>> the next two day-meeting is september 17th. the most important point to make is that the fed has moved private sector in that direction. the fed has an insider survey so to speak and right now the insiders that are surveyed think that the fed will reduce purchases by 15 million. >> the dow had the longest losing streak this week. six days of decline. is this just a late summer swoon or a bigger correction to come? what do you think is happening? or do we care because it's the end of august. >> all the talk is whether the dow can handle higher interest rates. the yield is 2.8 or 2.9%, so it's doubled over the last 13 months. and the dow is up 22% over that timeframe, we have had a good run. yields have repriced partially because of the federal reserve
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and the questions right now, the most important point is that august and september are never a particularly strong period of time for the stock market and after the run that we have had, some period of digestion is perfectly normal. >> i feel like retail investors and individual investors, ultimately this is -- the negotiation with the fed works out, and we have short-term uncertainty with all the things you mentioned, with the sequestration and the new governor coming in. >> how do you deal with the stocks? >> i do like individual stocks. i think we have bargains with the s&p 500. i think looking out, especially the u.s. markets, the cans in the u.s. that are operating in the u.s., look really well positioned to be able to continue to grow. >> what about you, jim, what is the plan? >> the first caveat is that everyone he is schedule is different. but that said, listen, to the
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point, what you want to look at is companies that are going to purchase over a period of time and whether the government has issues in september or not should not change the path of a given company's course of earnings. so you have to look through the near term turbulence, not ignore it, but look through it and identify companies that you like that will do well no matter the environment. and quickly, we have had a terrible economic environment for years and any number of stocks are up, 100, 200, 300, 400%. >> we will leave it there. good to have you on the program. andy, thank you both. >> up next on the money. walking in walmart's shoes. the ceo of the nation's largest retailer will join me and the nation's largest employer will talk hiring and selling to the nation's middle class. and prices for lobster off the coast of maine, we are looking at the impact on one of summer's top flavors and we will get a
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taste of one small business's impact on the country. let's take a look at how the stock market ended the week.
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♪ >> welcome back, super retailer, walmart, known for the roll back. but so far this year, the every day low prices have not been enough to sustain growth in the u.s. or international stores. why are they struggling when the economy seems to be growing a bit. i sat down with walmart ceo's, mike duke, who shared with me what happened to the middle class consumer. >> the customer, clearly is under pressure.
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the pressure from the payroll tax, the concern about fuel prices and jobs and employment, all of it puts a cloud on on the consumer. >> what are you expecting from back to school and the holidays? >> so i think they will continue to be pressure. i think the overall consumer spending in the united states and frankly around the world will be under pressure through the back to school and through the holiday season. but i think where customers can see value and quality and their needs be met, then those retailers will do well. >> what about competition? in an environment where you are seeing people stressed and stretched. are you seeing the dollar stores take market share at this point? >> wherever i'm at and across the united states, i drop in and visit competitors. i have great respect for all competitors. we see we continue to gain market share and feel good about that. >> your company has been about selling and operating for less because of different labor laws. because of different wages. are you having a tougher time selling for less international? >> actually, we have had great success in the markets that we
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have been in for a number of years where we have implemented our every day low price practice is where we have great success. for example, mx co, canada, the uk, those are emerging markets the customers still 1. >> the minimum wage. if the minimum wage goes up, it helps your customers, maybe they will spend more, but it forces you to pay more. what is the impact to walmart? >> the story of walmart with our people, it's not the pay to start, it's the opportunity. as you probably know, i think less than 1% of our associates make the minimum wage. the vast majority of our associates are paid more than that. >> let's turn our attention to mexico. walmart had higher expenses related to the corruption act. the bribery charges in mexico.
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$73 million in the first quarter, more than expected. $82 million in the second quarter. on top of the $155 million to implement the compliance program. a lot of expectations and more to come in the third quarter. investors expect? should she expect these kind of outflows for several quarters to come? >> the investigation itself and the timing, i cannot comment on. because it's an investigation under way. what i can say, and a portion of this investment is in the area of compliance. to do the right thing, in every market that we operate in, so we have invested in people, and processes and systems, to ensure that every market that we operate in, that we do it the right way. >> are heads going to role? is anybody going to get fired over this? >> it would be premature to discuss anything about the future. >> increasingly companies are shifting full time workers to be part time workers because of the
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expense of obama-care. last year in december, you said that you too would no longer insure part-time workers. how much of a burden is the rising cost of health care. explain it. >> i will clarify, back a number of years ago, we said before there was the affordable care act that the current system of health care was not sustainable. and we still believe that. but we have been working on this now for a number of years. so, the affordable care act really does not have the significant impact, because we have already met the test for affordability and quality of what the act requires. >> mike, one of the issues that came up with some of the investors that i was talking to and preparing for this interview is your succession. two people have been identified to be your successor. bill simon, and have you discussed the issue of succession with your board? >> i think every responsible public board at every board
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meeting should be discussing succession. and of course, walmart has a very mature board. our chairman, rob walton and other members, so, succession is an on-going. i think when i first joined the board of directors, it was discussed then and it's discussed in every board meeting continually. >> will you announce your retirement this year? >> you can tell that i love what i'm doing. that is not the topic of today's discussion. i'm high lly energized. >> my thanks to mike duke, next, "on the money" lobster is clawing its way to the top of the culinary world and the prices are economic lows. and
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>> welcome back, hey, did you know lobster is on a roll, as wholesale prices in maine, the nation's largest lobster harvesting state plunged to as low as $2 a pound. that leaves consumers to pay luxury prices. good to have you back on the program. >> great to see you. >> thank you for joining us, we have so much to go through, what is first behind the fact that lobster prices have really come down quite a bit. and the impact that that has had on the consumer industry. this guy wants to travel, okay? i mean, he is -- >> he came all the way from
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maine and wants to go home. >> he is to move. how dock lobster prices have gone down? >> there's a lot of lobster. but that actually is a good thing. it means that the traps have been maintained sustainablely. >> so even though the price has come down, it's not being passed on to the consumer. what is the infrastructure that makes menu prices different? >> well, the infrastructure would be did you buy the lobster whole? right, because you have the way that it got to you, it took a long trip. just like this -- this little guy. >> they are all on the move. >> they know something is happening here. they don't like having their claws tied up. oh, my god. i want to bring in jim, his coowner. you are bringing fresh lobster to your two food trucks in los angeles. good to have you on the program. thank you so much. how does it work in light of the increased lobster harvest
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happening in maine that dana is talking about? >> you know, it's been a testament to the state of maine and the industry and the regulation that they have in place that has created the sustainable product. which now, you know, it's -- they are having more landing. but there's a lot that goes on between the live lobster that comes out of the ocean in maine and then ends up in the lobster roll. it comes off the dock, it comes to the processing plant and it is cooked, picked, processed and packaged. >> tell me about your business. you were featured on the show, shark tank. >> yep. >> that gave you capital and customers. you are looking at more growth. >> yes, we started 15 months ago, with one truck in los angeles. we are building the third truck. we have a little brick and mortar in paspasedena, we have everything that has to do with lobster. we are trying to shift --
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>> this is just dana's accompanyment. >> why over think it. beer is great with lob sister. make it simple and get a beer that has a lobster his label. >> so, how is the falling price of lobster impacting your business? you know, dana is talking about the fact that there's a glut of lobsters and it's not being passed on. as she was saying earlier, it's that infrastructure that exists between landing the life lobsters and getting the fresh meat. it's a testament to the sustainability in maine that the fishermen and lobster men go through. if it's a pregnant female, if it's a smalled edsmall adolescel lobster, they throw them back so we have more lobster. >> are you seeing lobster being as popular as they always are. it's crazy.
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literally, it's been so nice bring our native maine lobster to l.a. people love it and their feedback is great. and we sell it for less than they do out here in new york. >> i noticed that. i mean, there are lobster roll wars, i'm sure you know. there's who's passion is the lobst lobst lobstlo lobster butter. >> these are the traditional two rolls, the little mayo, new england style roll, lightly toasted. my favorite, jimmy and i argue over this. this is my favorite. we call it a connecticut roll. same time of meat, all from maine, sauted in butter, a little lemon. so it's like when you are rip are the lobster and eating it, nice and warm, the butter is all over your face. you staining your shirt. no bibs, dirtying up. it's my favorite. most popular item. >> and looks good. everyone has to grab a lemon
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though. >> lemon that baby up. >> one, two, three. >> whoa! >> forget to drink the beer. >> this is great. you guys, thank you for joining us, dana, and cousins maine lobster. jim and saban, we see you in june. up next, take a look at the news on the up coming week that will have an impact on your money and golfer phil mickelson will join me. just how much is their winning taxed. back in a moment.
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>> for more on our show and our guests, go to our website and i hope you follow me on twitter and on google +, look for@maria bartiromo. here are stories coming up in the week ahead. on monday, we will see how manufacturing is doing with the release of orders for the month of july. on tuesday, the home price index will be out, that is due out, wednesday is the 50th anniversary of the march on washington. dr. martin luther king, jr.'s i have a dream speech. on thursday, the second estimate for the second quarter gdp is due, typically a market mover and billionaire investor warren buffett celebrates his 83rd birthday. phil mickelson cemented his financial success in golf.
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and i talked to him about an interesting side effect. the 60% tax bill on his winning. >> it's tough to talk about because nobody wants to be insensitive, nobody wants to be insensitive, a tough time where a lot of people are having a hard time with work, i have a chns to spend time with ceo s. a lot of them, quality individuals, that are having a hard time hiring because of the unturni i uncertainty that is going on. so, it's not making me want to go out and work harder. >> would you actually leave the country? oh, no, no, no i love this place. a lot of people thought i grew up in a country club. i didn't. i grew up in a family that was lower middle class and we did fine. but i wanted to play golf and i didn't have the tun. i did not have a club to practice at? you know what i did? i went down to the local course and got a job picking up range balls three nights a week, and
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for that, i was able to play and practice. if i had a strong enough will and desire to achieve it, i was able to fulfill my dreams. i don't know what her country allows those great opportunities. my thanks to phil mickelson, that's the show for today, thank you for joining me. my guest next week, labor secretary tom perez as we celebrate labor day. each week, keep it here, where we are on the money. have a great week, everyone. i will see you again next weekend.
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good morning. ragingi inferno, firefighters bracing today for winds of up to 40 miles an hour as the out of control fire now pushes closer to thousands of homes. we are on the front lines with the latest. stunning admission, mike tyson, once one of the most feared men in boxing, now afraid for his own life. >> i don't want to die. i'm on the verge of dying because i'm a vicious alcoholic. >> the tough road to sobriety for the former heavyweight champ. and thousands of people paying good money to be chased by a pack of 1,000-pound animals in america's first-ever running of the bulls. we'll find out if the adrenaline
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